Security Bank posts all-time high profit of P7.5B


Posted at Feb 04 2013 06:04 PM | Updated as of Feb 05 2013 02:04 AM

MANILA, Philippines - Security Bank posted an all-time high net income of P7.5 billion in 2012.

In 2012, Security Bank said customer loans increased by 30% to P119.6 billion, as deposits jumped 19% to P142.4 billion.

The bank said this translated to an 8% increase in net interest income "despite the adverse interest rate pressure coming from prevailing low interest rate, the monetary easing by the Bangko Sentral ng Pilipinas, the removal of interest paid on reserve requirements, and sale of securities by the bank." As a result, Security Bank said its net interest margin was 3.94% last year, lower than the 4.08% in 2011.

Non-interest income rose 4% on higher trading gains on securities and fee-based income.

The cost-to-income ratio was 43.2%, higher than the 36.9% reported last year as the bank embarked on branch expansion. As of end 2012, the bank had 208 branches for both Security Bank and Security Bank Savings.

"Our non-performing loan (NPL) ratio remained low at 1% while reserve cover was 213%. Our capital adequacy ratio (CAR) of 16.3% and tier 1 CAR of 14.7% reflect the higher loans and short-term treasury portfolio as of year-end 2012," Security Bank Chief Financial Officer Mr. Joselito E. Mape said.

"We are pleased to achieve our financial and business results amidst increased competition even while we are investing to increase our branch network and customer coverage capabilities during this period of economic growth," Security Bank President and Chief Executive Officer Alberto S. Villarosa said in a statement.